Harvest Health (CSE: HARV) this morning announced that it is reducing its focus on the California market through the sale of 13 operational and planned dispensaries in the state to that of Hightimes Holding Corp. The company did not provide details on which locations and licenses would be changing ownership.
While Harvest will maintain a small retail presence in the golden state, the company is refocusing the brunt of its operational efforts on that of the states of Arizona, Florida, Maryland and Pennsylvania. The company also stated that they will continue to “examine the strategic value of our assets and streamline operations as we move toward achieving our profitability goals.”
The thirteen retail locations are being sold in a combination of “equity and assets”for consideration that consists of $5.0 million in cash, $7.5 million in the form of a one year promissory note bearing interest at a rate of 10% per annum, and $67.5 million in preferred series A stock of Hightimes Holding Corp.
The transaction is anticipated to close by June 30, 2020.
Harvest Health last traded at $1.16 on the CSE.
Information for this briefing was found via Sedar, Falcon International and Harvest Health and Recreation. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
